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Exercise $7-3($Algo$)$ Reconciliation of Absorption and Variable Costing Net Operating Incomes $[$LO$7-3]$

$[$The following information applies to the questions displayed below.$]$

Jorgansen Lighting, Incorporated, manufactures heavy$-$duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data:

Calculate each years absorption costing net operating income.

Variable costing net operating income for year $1,2$ and $3$

Add $($deduct$)$ fixed manufacturing overhead deferred in $($released from$)$ inventory under absorption costing for years $1,2$ and $3$

Absorption costing net operating income for years $1,2$ and $3$